Newpark Resources Provides Operational And Financial Update
The following specific actions taken to-date have focused primarily on operations supporting the deteriorating
- The implementation of cost reduction programs, including workforce reductions, the suspension of the Company's matching contributions to its
U.S. defined contribution plan, and temporary salary reductions effectiveApril 1, 2020 for a significant portion ofU.S. employees, including a 15% cut to the salaries paid to executive officers and the annual cash retainers paid to all non-employee members of the Board of Directors; - The initiation of additional actions to further reduce the operational footprint of the Fluids Systems business in
U.S. land, to better align the Company's cost structure with expected declines in market activity levels; and - The elimination of all non-essential capital investments, which reduces our expected full year 2020 capital expenditures to approximately
$15-$20 million .
Howes continued, "With the 17% decline in
"Looking beyond the COVID-19 disruptions, consistent with our historical experience, we expect our Fluids Systems business units in the
"Within the Mats & Integrated Services segment, our diversified market presence provides the opportunity for revenue growth outside of the deteriorating E&P markets, as we seek to build upon the
"We entered 2020 with a strong balance sheet, available liquidity under our credit facility, and meaningful opportunities to reduce our working capital, positioning us well to settle our convertible notes that mature in
The Company ended the first quarter of 2020 with a cash balance of approximately
The Company plans to report first quarter 2020 results after the market closes on
This news release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. All statements other than statements of historical facts are forward-looking statements. Words such as "will," "may," "could," "would," "should," "anticipates," "believes," "estimates," "expects," "plans," "intends," and similar expressions are intended to identify these forward-looking statements but are not the exclusive means of identifying them. These statements are not guarantees that our expectations will prove to be correct and involve a number of risks, uncertainties, and assumptions. Many factors, including those discussed more fully elsewhere in this release and in documents filed with the
Contacts: |
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Senior Vice President & Chief Financial Officer |
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281-362-6800 |
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